Simone's small business has accumulated $14,750 of excess cash that will not be needed until a new piece of equipment is purchased. What will be the maturity value if she invests the funds in a 120-day term deposit paying an interest rate of 1.35%? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Maturity value

Simone's small business has accumulated $14,750 of excess cash that will not be needed until a new piece of equipment is purchased. What will be the maturity value if she invests the funds in a 120-day term deposit paying an interest rate of 1.35%? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Maturity value

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Bank of America is currently selling a security that will pay $300 one year from today, $400 2 years from today and $800 at some undisclosed time in the future. Find the time at which the $800 payment is made if the interest rate is 11% and BofA is selling the security for $1000. Round this number of years (from part a) to the nearest year. Assuming that the last payment is made at the end of the year you found (after rounding), find the future value of the security at that time (you can ignore the $1000 price of the security). Assume the interest rate is 11%.
Maryam's retirement scheme is in such a way that for the present year, she invests QR 250,000 (as Present Cash outflow) and she expects of the asset of QR 700,000 (Cash inflow) over 20 years. Assuming no deposits (A) made to his retirement account over the aforementioned 20 year period, what annual rate of return did she make? Hint: You may use RATE function in MS Excel to calculate the annual rate of return. 8.00% 4.22% 3.13% 5.28%
Provide step by step manula solution, formula, and diagram. An investor have a projected surplus income of P1000 per year which he plans to place in a bank which offers an interest of 18% per annum for time deposit over 5 years. Compute how much shall the investor collect at the end of 13 years
James plans to receive a monthly annuity of $779 for the next 25 years as part of his inheritance. The interest rate is 10.78 per annum compounded monthly Calculate the present value (PV) of this annuity. $72.26 O$779.00 $867.16 $289.05 O $1.11
A. Solve the following problems and show your complete solution. 1. Anna bought a diamond necklace worth P185,000. Securing 15% down payment, they agreed to pay the remaining for 1 year with 12% annual interest rate. a. How much is the down payment? b. How much is the mortgage loan? 00 c. How much is the monthly amortization? d. Create an amortization table. HRISTIA
To help with a down payment on a home, Elsa is going to invest. Assuming an interest rate of 1.73% compounded annually, how much would she have to invest to have $36,800 after 7 years? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. $0 S oo E D
ou have discovered an investment opportunity that earns a 3% rate of interest compounded semiannually. What amount should you deposit today to have $7000 in three years? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest dollar.) $6400 $6370 $6406 $6402
Y
Both questions
if magui will invest her money today worth 500000 in JMC Mining company, how much is the expected annual net income if the money has an interest rate of 7% and yield of investment of 6% for 10 years? Annual Income = ___ (2decimal places only) All answer must be rounded off. Do not store values on your calculator. Use the previous answer if needed.
Charlie Munger wants to save for a trip to Italy. He will need $18,108 at the end of 12 years. He can invest a certain amount at the beginning of each of the next 12 years in a bank account that will pay him 5 percent annually. How much will he have to invest annually to reach his target? (Round to the nearest two decimals. Do not type the $ symbol)
Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $31.59 B. $31.30 C. $26.04 D. $25.74 E. $29.25

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